Labor and Washington lose big

After an earlier slip of the tongue by a local government official, it looked like Boeing's second 787 line was moving east. Overnight, based on this article, it seems certain. This is a case where, despite friends in high places, the union pushed Boeing too far. The move is fraught with complications. Patty Murray has been a vociferous Boeing supporter in Congress. It is she who is in the vanguard trying to ensure the USAF buys only Boeing tankers. It was she who years ago let slip Saudia was buying Boeing - before anyone else knew "officially". Now as Boeing considers (to put it mildly) a move to South Carolina, the entire Washington state political structure is going to get shaken. The foundation upon which so much has been built - Boeing is a huge source of largess for political campaigns - must change. South Carolina now will join the team in Congress that will be pro-Boeing, no matter what. Washington state's politicians no longer have the monopoly on the company and its money.

In truth this is good for Boeing. The union will now try to organize the Charleston plant. But it will come in under a cloud. It is unlikely to succeed because workers in Charleston need only look to see how damaging the union's action have been to Boeing and its workforce. The union has not managed to keep jobs or benefits. In our view big labor has taken a bit hit.

For Boeing this is a big win - it will have competition going forward, within the US and under its direct control. Competing plants is excellent news on many levels. While this does not mean an end to offshore outsourcing, it almost certainly gives Boeing options it has not had before.

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